Skip to main content

The Mastery Of Self

he Mastery Of Self We do everything for a reason. The reason behind any act is, for the most part, unconscious. If we want to change a behaviour we need to identify the reason, the underlying objective, and examine it. We need to examine it to determine whether this objective, this assumption, supports us in what we want to do now. Most of the beliefs, or rules, that govern our behaviour now, were formed in early childhood. They have become predominantly unconscious beliefs and their effect is to dictate the way we respond. Most of these beliefs continue to support us well, but some have long outgrown their value. My baby son Arthur, does not yet know that touching a hot stove is painful. At some point he will burn himself and he will start to form a set of beliefs about hot things that will, by governing his behaviour, protect him from getting burnt. He won't necessarily remember these early experiences with heat, but his new beliefs will continue to guide him for the rest of his life. When it comes to trading, most of what we have learnt to date and the beliefs that we have formed about success are inappropriate. When we are trading we need to be: Quick to cut a loss Flexible to the ever-changing flow of information Take the lead from the market rather than try to control it Comfortable with uncertainty and risk What are we taught about success? Not to be a quitter To be decisive, not fickle To take charge/control To dictate To stamp out uncertainty It is not difficult to see that what we believe about success in all other areas of life will work against us as traders. Lets look at some particular behaviours in trading. Not cutting losses, what is the likely thinking that would result in this behaviour? Losing is bad (If I lose then I am a loser) Being wrong is bad (we all learn this at school!) To take charge/control I want to be right all the time i.e. perfectionist And snatching profits: Fear of losing what we have (losing is bad again) Need to feel good (I am not good enough) Ultimately I thing we struggle as traders because we want and need to feel good about ourselves and we are looking to the market for this affirmation. We are reluctant to take a loss because we think a loss is bad and that it underlines our fear that we are bad (a loser). We snatch profits because we are desperate for information that supports the idea that we are good. If I have an unshakeable belief that I am good, then I would not look to the market for approval; we only look for something we think we don't have. To resolve this problem we need to simultaneously work on and build the belief that we are already perfect and we need to shift our neediness away from the market and seek affirmation from another source.

Comments

Popular posts from this blog

Trading Software India With Most Accurate Live Buy Sell Signals

FII, QFI, NRI AND FVCI TO COME IN SINGLE WINDOW—STOCK MARKET TO EXPAND         It is like imaging a world without borders where FII is equal to NRI is equal to FVCI which together will form QFI. The only discrimination is between portfolio investment and non portfolio investment.   Though it appears utopian scheme; however if Finance Minister P. Chidambaram is to be believed this dream could be soon a reality.   Stock market will gain massively from this development and nifty will witness a quintenessial inflow of fund.   The intraday traders in nifty future and nifty option will see a new age of investment.   Marching ahead in the stock market momentum, two committees have been set up to map the mirage.   One committee under the former cabinet secretary to look at harmonizing portfolio investment routes—and another by the finance ministry under the economic affair secretary to define what distinguishes FDI and...

FII DII ACTIVITY 17 AUGUST

FII trading activity on NSE and BSE FII trading activity on NSE and BSE on Capital Market Segment The following is combined FII trading data across NSE and BSE collated on the basis of trades executed by FIIs on 17-Aug-2012 FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 17-Aug-2012 2169.11 1860.89 308.22 Domestic Institutional Investors trading activity on NSE and BSE on Capital Market Segment The following is combined Domestic Institutional Investors trading data across NSE and BSE collated on the basis of trades executed by Banks, DFIs, Insurance, MFs and New Pension System on 17-Aug-2012 DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 17-Aug-2012 1044.55 1004.36 40.19 The data is based on today's activity compiled on the basis of trading codes entered by trading members at the time of orde...